- Natural gas producer PAO Novatek said it signed the Heads of Agreement with Japan's Saibu Gas for the creation of a joint LNG and natural gas venture and also announced that a final investment decision had been approved on its Arctic LNG 2 project.

The joint venture would focus on marketing LNG and natural gas to end customers and developing the business for bunkering and gas-fired power generation in Japan and the Asian region, as well as constructing and operating a new LNG storage tank at the Hibiki LNG terminal.

The Arctic LNG 2 project consists of the development of the Utrenneye field and the construction of a natural gas liquefaction plant on the Gydan Peninsula in the Russian Arctic region.

Participation in the project would also provide for long-term LNG offtake by all the participants in proportion to their respective ownership interests.

The LNG plant would have hree liquefaction trains with overall production capacity of 19.8m tonnes per annum. The launch of the first LNG train was scheduled for 2023, with LNG trains 2 and 3 to be launched in 2024 and 2026, respectively.

Capital expenditure to launch the project at full capacity was estimated at US$21.3bn.

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